China's Oil Reserves Give It Unexpected Geopolitical Muscle

China's extensive preparations for an oil supply crisis have given it significant geopolitical influence. The country has built massive oil reserves, expanded its refining capacity, and invested in alternatives such as coal, electric vehicles, and high-speed rail.

This strategic move has allowed China to cut its oil purchases by 23% during the Iran war, compared to the same period a year earlier. Other countries heavily reliant on Middle Eastern oil had fewer options, leading to reduced consumption or higher fuel costs.

China's influence is not based solely on its large-scale purchases but also on its refining strength and alternative energy sources. The country has demonstrated this by imposing restrictions on fuel exports during the early months of the Iran conflict, which helped preserve domestic supplies while limiting fuel available to countries abroad.